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Bitget Research: BTC ETFs Net Inflows Drive Market Uptrend, Strong Wealth Effects in Memecoin Sector

Aaron & Tommy
2024/05/14
Bitget Research: BTC ETFs Net Inflows Drive Market Uptrend, Strong Wealth Effects in Memecoin Sector
In the past 24 hours, many new popular tokens and topics have emerged in the market, which are likely to be the next wealth creation opportunities.

Overview

Yesterday, BTC led a market rebound, regaining ground lost over the weekend. The king of retail investors in the USA returned, making memecoins the focal point of the market. The highlights are as follows:
  • Sectors with strong wealth creation effect: Memecoin and AI sectors.
  • Top searched tokens and topics: Pudgy Penguins, Kaito, Notcoin, and TON.
  • Potential airdrop opportunities: GM Network and DFlow.
Data collection time: May 14, 2024, 4:00 AM (UTC)

1. Market Environment

Yesterday, BTC led a significant market rally, surging $2000 in four hours and hitting 63000, fully recovering from the weekend's decline. Keith Gill's return sparked a surge in the memecoin sector, with PEPE rising 20% in a single day, setting a new all-time high. Additionally, BTC ETFs saw a net inflow of $66 million, boosting market confidence.
The U.S. Dollar Index oscillated around $105, with the Nasdaq and S&P 500 showing technical signs of peaking. U.S. PPI and CPI data for April are expected to be released on Tuesday and Wednesday, respectively. Market expectations are for the PPI to increase by 0.3% month-over-month, while the CPI is anticipated to grow by 3.4% year-over-year, and the core CPI is expected to rise by 3.6% year-over-year. High volatility is likely this week, and traders are advised to monitor market changes, reduce positions appropriately, and manage risk effectively.

2. Wealth Creation Sectors

2.1 Sector Movements — Memecoin Sector (PEPE, DOGE, and WIF)

Primary reasons:
  • Yesterday, Roaring Kitty, the blogger who initiated the short squeeze on GameStop stocks during the retail investor movement in GameStop shares, returned to Twitter after three years, boosting market sentiment.
  • Phenomenal memecoins like KITTY and GME have emerged. GME on Solana accumulated over $100 million in 24-hour trading volume, driving the hype for memecoins.
Gainers: PEPE rose 24% in one day, DOGE 11%, and WIF 12%.
Factors affecting future market conditions:
  • Whether native token price continues to rise: Many memecoins on Solana are priced in SOL. An increase in SOL's price directly boosts the value of Solana-based memecoins. If the price of SOL continues to rise, the memecoins on Solana are likely to maintain their popularity.
  • Cryptocurrency market sentiment: Yesterday, the market experienced a slight rebound, with funds beginning to circulate, and the wealth effect extending its benefits to the memecoin sector. If this upward movement continues, it would be wise to keep an eye on the memecoins.

2.2 Sectors to Focus on Next — AI Sector

Primary reasons: Yesterday, OpenAI launched its flagship AI model, GPT-4o, capable of real-time audio, visual, and textual reasoning. The release of the text-to-video model Sora by OpenAI in February drove up valuations across the sector. The launch of GPT-4o highlights the importance of maintaining focus on the AI sector.
Specific tokens:
  • ARKM: Arkham is a blockchain analytics platform that utilizes artificial intelligence to analyze blockchain and on-chain data.
  • NEAR: Recently, many AI projects within the NEAR ecosystem are in the development or funding stage, positioning NEAR to potentially become a future AI Hub.
  • RNDR: As foundational infrastructure in the AI sector, RNDR's involvement in the AI field, along with its deep integration into the Solana ecosystem and other sectors, and its partnership with Apple as a VR collaborator, undoubtedly presents significant market potential. Market movements in response to Apple's upcoming VR device developments are also anticipated.

3. Top Searches

3.1 Popular DApps

Pudgy Penguins:
The NFT project Pudgy Penguins announced that its toy product, Pudgy Toys, is now available at GameStop. Pudgy Toys have just hit the shelves at Target. Previously, Pudgy Penguins announced an expansion of their partnership with Walmart, adding 1100 stores to distribute the toy line and launching new Walmart-exclusive toys. Pudgy Penguins NFTs have doubled in value within a year, with a peak increase of 300% this year.

3.2 X (former Twitter)

Kaito:
Kaito is an AI-driven digital asset research platform aiming to revolutionize cryptocurrency research and investment through AI. Kaito’s MetaSearch allows users to search the entire crypto space with a one-click product across platforms like Twitter, Discord, governance forums, Mirror, and Medium. In addition to aggregating information, Kaito also leverages AI to optimize its search engine through rankings, topic mining, personalization, recommendation, speech-to-text transcription, and AI-generated content. The project has received a total investment of $10.8 million from VCs including Superscrypt, Spartan, Dragonfly, Sequoia Capital, and Jane Street.

3.3 Google Search (Global and Regional)

Global focus:
(1) Notcoin, TON: It was described in yesterday's report.
(2) Trump and Biden: As the US election approaches, numerous memecoins themed around "Trump" and "Biden" have emerged on the blockchain. In 2023, Trump released NFTs associated with his image and recently expressed support for cryptocurrencies during a speech, leading to repeated hype of his eponymous memecoin, humorously referred to in social media as "Politifi."
Regional focus:
(1) There is a lack of notable trends in hot search topics in Asia.
(2) In Europe and the USA, the focus has shifted back to mainstream memecoins. SHIB has appeared in hot searches in countries like Spain, Italy, and the UK; PEPE, FLOKI, and DOGE have also been prominently searched across several Western countries.
(3) Russian-speaking countries and regions: BLUM has been trending in Russia and Ukraine. Blum is a hybrid exchange based on the "CeDeFi concept", allowing access to both CEX and DEX tokens on a single platform, supporting multiple blockchains, and offering services including AI navigation, P2P trading, and derivatives trading.

4. Potential Airdrop Opportunities

GM Network – A zero-cost DePIN and AI L2 project
GM Network is a modular Layer 2 focused on building a closed-loop ecosystem through the integration of DePIN and AI, aiming to establish a comprehensive system spanning Chain, ID, and App.
The project, developed by GM Labs, has received $8 million in investments from VCs such as Hash Global, Danhua Capital, Matrix Partners, NGC, Mask Network, SevenX, and Znoff. The project's founder, Chess, is also the founder of QuestN.
How to participate: Currently, GM Launchpad (launchpad.gmnetwork.ai) is running the Mission Season 1 promotion, where creating your own AI persona and participating in social media activities plus daily check-ins can earn points without any gas or transaction fees. To earn more points, purchase the project's NFT, CyberV.
DFlow – An updated deposit-type project
DFLOW is a decentralized order flow marketplace designed to support order flows from various L1 chains and Rollups. It has secured $7.5 million in funding from prominent institutions like Framework, Coinbase, Wintermute, and Multicoin.
Previously mentioned as a straightforward project for earning points through deposits, DFlow has recently announced an update: A few days ago, DFlow tweeted, "DFlow is coming to you on May 28th," which likely indicates a significant product update and suggests an imminent airdrop, making it an optimal time to engage with DFlow.
To participate, visit the DFLOW website and create an account, which generates a Solana wallet address with an exportable private key. Deposit at least $5 worth of DFLOW-supported tokens (SOL, jitoSOL, USDT, USDC, etc.) into the wallet. The project awards XP points based on the amount and duration of the deposit and withdrawing tokens results in a proportional deduction of points. Additionally, inviting friends to make deposits into DFLOW earns extra points.
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